Memory packaging and testing specialist Powertech Technology (PTI) now expects its sales to decrease up to 10% sequentially in the first quarter of 2012, company chairman DK Tsai said during a February 9 investors conference. Tsai previously estimated a larger 10-15% decline.
Tsai noted that the worst could be over for the DRAM industry, as demand returns with no growth on the supply side. Previously, unfavorable market conditions and the impact from Thailand's flooding had weighed on demand, Tsai said.
But still, the DRAM industry has seen no clear signs to promise an upcoming recovery, but is stabilizing for sure, Tsai pointed out.
PTI has also seen a ramp-up in orders for NAND flash and mobile DRAM memory, Tsai indicated. PTI's sales for January turned out to be better than expected, according to Tsai.
PTI has budgeted NT$5-6 billion in capex for 2012, down significantly from NT$12 billion last year. PTI will not be investing production equipment for DRAM products, but will focus on facilities for its high-end packaging technologies and testing tools for SSD-use NAND flash memory, said Tsai.
In other news, Tsai commented that Elpida Memory will go through its financial crisis with government help. It is unlikely the Japan government will give up supporting the country's sole DRAM company.
Elpida reportedly is among PTI's major clients.